Knowledgeable with GOLD KARATS

Investing In Gold and Art

17/01/2020

Many long-term investors have been diversifying their portfolio by investing in common asset classes like stocks, bonds, jewels, rare coins, precious metals and fine wines. However, not many were aware and knowledgeable that art is now one of the most potentially lucrative investment classes. To begin with, art is a potentially lucrative investment class, according to The UBS and Art Basel Report for 2018, sales on the global scale has reached as much as $67.4 million and will continue steadily. Art investment may seem a little challenging at first as the value of arts are rather based on individual perceptions. So long as you have done your research and truly know what you are doing, you will have much fun in art investment and earn a great profit out of your art. It is important to highlight exactly what makes art so sought-after by investors. Many were drawn to the market due to the gains, of which investors have worked hard to identify paintings that holds the best chance of rising in value over time. Of course, purchasing art is as much an emotional decision as it is a financial decision. Ultimately, no one would buy paintings that they are not fond of just to resell it for a profit someday. Every form of investment has its ups and downs. Here are the knowledge of pros and cons of art investment.

Pros of Art Investment

Cons of Art Investment

No Market Fluctuations
One of the major perks of art as an asset is that the value of art does not rise or decline with the stock market. Your stocks may not be performing well, but that will never affect your art investment. This is great news for savvy investors who are diversifying your portfolio at a minimal risk.

Appreciation Value Unguaranteed
Every artwork is exclusive, and it usually appreciates progressively over time. If you have chosen your pieces wisely, your art may worth significantly more than what you have paid. But like any market, the art market has its ups and downs as well. Art investment does not fickle in price like stocks but its environment instead. New or established artists may fall out of favour as quickly as they rose to be the toast of the town. Hence, the best thing an art investor could do is truly love his collections and understand that his collections will be stuck with him longer than he may have anticipated.

Physical Asset
When art is a physical asset, you can control them. An art investment is all yours. Your management, care, and storage are your responsibilities, not in the hands of any investment firm.

Illiquid Assets
With stocks or bonds, you can produce cash easily with these liquid assets. The biggest drawback of art is its non-liquid or illiquid asset. This means you would not be able to sell the painting and convert into cash right away. With illiquid assets like real estate and art, even if they have a great monetary value, the process of selling them takes a long time.

Enjoyment Value
Instead of visiting galleries, you are already on the lookout for great pieces to add to your home and turning these appreciations into assets.

Preserving Your Asset Can Be Difficult
Some investors enjoy having control over their physical assets. However, problems arise in aspects of displaying or storing the artwork safely from direct sunlight, heat sources, harsh temperature or natural disaster. This may be a massive disappointment factor for new art investors.

Now that you know the pros and cons for art investment, you must be wondering which type of art you should invest. How about a profitable combination of the precious metal, Pure Gold and Art for investment? We call the GOLD ART. Do you know exactly why gold always had a value? Back during the days, ancestors figured that currencies were much easier to implement than a barter system. Hence, coin was the medium of exchange. Among all the metals on the periodic table, gold was the best choice as it does not corrode like any other metals and could easily melt over a flame to stamp as a coin. If the modern paper-money economy were to collapse, gold is the most logical exchange choice for goods and services. Therefore, many long-term investors have their eyes on gold bars and coins. But these investments require insurance and a secure vault which can be a hassle and expensive.

Unlike investing in gold arts from the world’s only gold painting artist, Master Kim Il Tae who paints gold pigment paintings with his perfect secret mixture of Pure 24 carat Gold that does not fall apart, nor change colour. With Master Kim’s golden arts, you and your family could appreciate the value of this tangible and visible investment at home as well as a gold decor that enhances the interior design of your home. We bet you are now considering Master Kim Il Tae’s gold arts to expand your investment portfolio.